In 1995, the Boston Chicken Co. opened and rapidly built a huge chain of over 500 restaurants
Question:
In 1995, the Boston Chicken Co. opened and rapidly built a huge chain of over 500 restaurants selling a large menu of hot chicken items, cold cut sandwiches, specialty side items, and milkshakes in a quick-dining environment. Since 1996, the restaurant has used a logo that is “a black oval with a red background containing the words “Boston Chicken” in white and red trim letters”. In addition to the corporate website, each individual franchise or store has the option to host their own page. Per company policy, every such website includes the term “bostonchicken” within the URL address.
A small restaurant opened in Myrtle Beach in 2020 and has used the name “Beantown Bird and Steaks” for its business along with an image of “a black rectangle containing a white and red chicken and the words “Welcome to Boston!” in red letters and with a smaller white rectangle containing the words “Beantown Bird and Steaks” underneath” as its trademark since 2020. The high-end, sit-down restaurant sells expensive cuts of meat, chicken, and exotic seafood but does not sell prepared sandwiches or any sliced meats with bread. As a part of its advertising and online reservation system, Beantown Birds and Steaks registered a URL and launched a website including the words “welcometoboston” in the domain name.
YOU are the judge. Using the IRAC method, discuss the Issues, the applicable Rules, the application of the Rules to the facts, and reach your own Conclusion.
1.Can Boston Chicken sue Beantown Birds and Steaks for the use of the black rectangle logo? Under what theory will they sue and what must they prove? Will they win?
2. Can Boston Chicken enjoin (stop) Beantown Birds and Steaks using the “Boston” term in their URL? If so, under what theory can Boston Chicken sue Beantown Birds and Steaks in court, and will they win?
Strategic Management Text and Cases
ISBN: 978-1259900457
9th edition
Authors: Gregory G Dess Dr., Gerry McNamara, Alan Eisner